Ann: BNU Hard Coking Coal Mine Activities Update, page-5

Hi all, TER to me is one of the most exciting prospects on the ASX atm.

I have been looking at them for a while but been unsure where they're at. Today's announcement about production happening at BNU was the catalyst for me to buy in modestly. Paid a lot more than you lot, but congratulations on picking the value earlier.

I have my doubts about Blair Athol, why the hell would RIO give it away if it was a gold mine of a coal mine, if you get my drift.

It is actually the other projects that I'm more excited about. The thermal coal Springsure project for example. I don't know if any remember Bandanna Energy, I do, I was holding 190,000 shares when they folded. They were in the final stages of preparing to mine Springsure Creek Coal, which I am guessing is one and the same as the TER project. Anyone who could clarify that would be much appreciated. Bandanna's main problem was getting approval from landowners and therefore a mining lease and therefore finance when the price of coal collapsed. They were between a rock and a hard place as they had an onerous take or pay agreement with Wiggins Island coal terminal that was at the contract start date. They called in receivers despite having $96 million in the bank to avoid the situation getting worse. That lead to liquidation, I don't know what creditors ended up with but shareholders certainly got nothing. The objecting landowners dropped their dissent after the company fell over.

The point of this story is that Springsure Creek is a close to operational coal mine which they probably obtained for a lot less than it's construction costs but there might now be an issue with an offtake agreement.

Bandanna also had a half ownership of what they called the South Galilee Coal Project. TER is developing the North Galilee Coal project, so will be nothing to do with the Bandanna project. The only reason for mentioning it is that the entire Galilee area is apparently a massive high quality coal area, also a reason to like TER.

Cheers . .